Correlation Between Enterprise and Graf Acquisition
Can any of the company-specific risk be diversified away by investing in both Enterprise and Graf Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enterprise and Graf Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enterprise 40 Technology and Graf Acquisition Corp, you can compare the effects of market volatilities on Enterprise and Graf Acquisition and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enterprise with a short position of Graf Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enterprise and Graf Acquisition.
Diversification Opportunities for Enterprise and Graf Acquisition
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enterprise and Graf is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise 40 Technology and Graf Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Acquisition Corp and Enterprise is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enterprise 40 Technology are associated (or correlated) with Graf Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Acquisition Corp has no effect on the direction of Enterprise i.e., Enterprise and Graf Acquisition go up and down completely randomly.
Pair Corralation between Enterprise and Graf Acquisition
If you would invest 1,042 in Graf Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Graf Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enterprise 40 Technology vs. Graf Acquisition Corp
Performance |
| Timeline |
| Enterprise 40 Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Graf Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enterprise and Graf Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enterprise and Graf Acquisition
The main advantage of trading using opposite Enterprise and Graf Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise position performs unexpectedly, Graf Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Graf Acquisition will offset losses from the drop in Graf Acquisition's long position.| Enterprise vs. DP Cap Acquisition | Enterprise vs. A SPAC II | Enterprise vs. Athena Technology Acquisition | Enterprise vs. Oak Woods Acquisition |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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